GoldCoin.net spokesman Keith Kelly says NYU’s version of bank stress tests require more from banks than does the Federal Reserve, and the NYU tests take real-life situations into account, reports “America’s Gold Coin Superstore.”

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All but one bank failed the NYU stress tests, but the Fed policymakers don’t want the public to freak out after seeing how many risks the big banks are taking so soon after the recession.

“The Fed says participating banks must maintain a leverage ratio of four percent or more, which means they need at least $4 in capital for every $100 in assets,” Kelly said. “A healthy bank should never come close to that figure.”

Additionally, the NYU tool factors in real-life situations such as the possibility of rising interest rates and the idea that paranoia could spread to other banks if one bank failed.

“The Fed’s stress tests take place in a vacuum, and the NYU tool allows us to see what could really happen,” Kelly said. “According to a March 19th Bloomberg News article All but one bank failed the NYU stress tests, but the Fed policymakers don’t want the public to freak out and that’s what they would do if they were aware of how many risks the big banks are taking so soon after the recession.”

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